Fleet Management News & Business Info | Commercial Carrier Journal
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COMMERCIAL CARRIER JOURNAL | NOVEMBER 2015 57 INNOVATORS SADDLE CREEK LOGISTICS SERVICES Lakeland, Fla. their earnings every day. The company uses a regional transpor- tation model in which drivers complete round trips every 1.5 trips per day on average. Every time drivers enter and leave a facility, they complete an electronic sign-in process using kiosks set up at every location. As part of the sign-in process, drivers review their most recent work activities and can dispute information immediately. "They are paid weekly, but their pay is resolved every day of the week," DelBovo says. "The check should never be wrong." In cases where drivers have a subpar week that results in a low bonus – perhaps because they idled their trucks while being detained – the impact is short-lived; all measurements for the bonus program are reset weekly. Besides giving drivers a continuous feedback loop, the kiosks also help reduce paper. Payroll checks are deposited elec- tronically, but drivers who still prefer pay stubs on paper can print them through the kiosks. Predictive modeling On any business day, Saddle Creek has more loads than trucks and drivers in its system, and it also has more drivers than trucks. This is by design to maximize ef- fi ciency with slip-seat operations. Balancing its dynamic demand and capacity is a constant challenge. Its transportation management system had T he American Trucking Associations estimates that an additional 89,000 new drivers will need to be brought into the industry each year to keep up with demand and replace the ones who are retiring. ATA expects the current shortage to reach 50,000 this year. Can motor carriers grow revenues quickly enough to support pay raises to help them recruit and retain drivers? If not, where will they fi nd the money? Saddle Creek Logistics Services (CCJ Top 250, No. 232) believes the sky is the limit for driver earnings through its focus on fl eet effi ciency. Several projects this year have made it possible for the Lakeland, Fla.-based company to raise driver pay without asking customers for rate increases. The integrated warehousing, transportation and third-party logistics services provider has more than 500 trucks, 600 drivers and 2,000 trailers domiciled at 14 of its 41 loca- tions nationwide. Drivers get an increase in their base pay for every year of employment, and there is no cap. Saddle Creek also has implemented a new bonus program that pays out weekly. Drivers earn an additional per-mile rate by exceeding baseline measures for fuel ef- fi ciency, safety and accuracy. There also is no limit on how much drivers can make in bonus money. Michael DelBovo, Saddle Creek Transportation president, says drivers are averaging an extra 2 cents per mile each week. While some make more and some less, everyone is rewarded for saving the company money. Pay with no surprises Pay variations are a common frustration for drivers at any company. To help prevent payday surprises, Saddle Creek developed a system for drivers to verify the accuracy of Several projects help the company raise driver pay without raising customer rates. Creative thinking, technology generate savings, higher driver pay for Saddle Creek BY AARON HUFF